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The ongoing vitality of the region’s
retail sector is directly related to the
likely fortunes of the real estate sector.
Retail provides much of the demand
the real estate sector depends on, and
any factor that causes retail activity
in the region to lessen will inevitably
have knock-on consequences for
real estate. For this reason, we are
delighted to see that, throughout
the Gulf, retail continues to perform
strongly, and we expect to see it post
growth of an average eight percent
in 2015. In Dubai alone, we forecast
retail growth of ten percent, a figure
we believe the emirate can sustain for
the next half decade, at least. Retail
spaces will expand by some thirty to
forty percent in Dubai over that time
as new malls are constructed to meet
demand. By the end of 2014, the UAE
retail market was valued at AED120bn.
Mazaya Monthly Real Estate Report -
Week 3 - September 2015
10
In Bahrain, we see continued investment
into the retail sector, evidence that
confidence is still strong. Mega malls
are being built and office space is also
at a premium. We believe there is still
plenty of potential in Bahrain’s retail
sector, a view that is increasingly shared
by international investors. International
Bahrain Investment Park, Bahrain
Investment Wharf and Bahrain Logistics
Zone are examples of the progressive
attitude towards retail Bahrain is
currently demonstrating. We also see
plenty to be optimistic about in terms of
Bahrain’s residential real estate sector.